By Blair Qualey
Over the next several weeks, I will have the opportunity to visit several communities across British Columbia to share perspectives on the opportunities and challenges facing new car dealers — and, by extension, consumers.
The NCDA is pleased to sponsor a series of Chamber Business Leaders Luncheons this fall (Victoria on October 9, Prince George on October 16, Abbotsford on November 7, and Kamloops on December 4) providing an important platform to profile ICBC – while highlighting the urgent need for policies that protect families and support business growth.
These conversations could not be more timely.
British Columbia’s recent Economic Update confirmed an unprecedented level of deficit and debt. At the same time, consumers are experiencing increasing costs for housing, food, fuel, and childcare – stretching household budgets to their limit. Families across BC are making tough choices about where their money goes.
Meanwhile, automakers continue to invest billions of dollars into cleaner technologies, advanced safety features, and modern systems that consumers want and deserve. These innovations represent progress and leadership in global markets, but they also come with a price tag. For everyday British Columbians, the cost of a new vehicle continues to climb at precisely the moment when affordability is already top of mind.
Adding to the pressure is the ongoing tariff dispute with the United States. Because of our deeply integrated North American supply chain, tariffs on steel, aluminum, electronics, and vehicle components ripple quickly through the system. Canadian consumers ultimately pay more, even when our country does not directly impose identical measures. For drivers, it means higher sticker prices and repair bills. For dealers, it translates into increased wholesale costs and challenges in serving their customers.
BC’s more than 400 new car dealerships — most of them small, family-owned businesses — are also feeling the pinch. These businesses are the backbone of communities from Vancouver Island to the Peace Region, providing jobs, supporting local charities, and keeping families on the move. Yet they, too, face the compounding effects of higher property taxes, tariffs, and supply chain disruptions.
The auto sector, however, is not unique. Whether in construction, hospitality, agriculture, or retail, nearly every industry is dealing with its own version of these cost pressures. The common thread is clear: when costs pile up, families delay purchases, businesses scale back, and governments ultimately collect less, not more. The cycle is unsustainable.
This is why we continue to underline a key message: new or higher taxes are not the solution. They would only deepen affordability challenges for families, discourage investment, and reduce consumer confidence. In the end, everyone loses. What BC needs instead is a prudent, thoughtful approach that balances fiscal realities with policies that support affordability and growth.
There are steps government can take right now to relieve pressure on households and businesses:
- Put the brakes on Zero-Emission Vehicle (ZEV) mandates. Originally designed in an era of peak EV enthusiasm, today’s mandates impose punishing penalties on dealers that do not reflect current consumer realities. A recalibration is overdue.
- Reinstate stable, predictable EV rebates. Families considering the transition to an electric vehicle need confidence that supports will be consistent and fair. Stop-start policies only undermine that confidence.
- Update the outdated “luxury” tax threshold. Set at $55,000 decades ago, this threshold no longer reflects the real cost of a modern family vehicle. Adjusting it is a matter of fairness.
- AND resist the urge to increase sales taxes. Adding more costs to already stretched families and businesses would only delay purchases, cut spending, and slow growth across the economy.
This conversation is about far more than cars, trucks, and SUVs. It is about fairness. It is about affordability. And it is about protecting jobs in every corner of British Columbia. When families can keep moving forward, businesses can grow, and communities can thrive.
Despite the challenges, there is reason for optimism. With the right choices, BC can turn today’s pressures into tomorrow’s possibilities. If government, business, and communities work together, we can strengthen the economy, protect affordability, and ensure BC remains a place of confidence and opportunity.
That is the vision the New Car Dealers Association of BC is committed to advancing — and it’s a message I look forward to sharing, as I travel to a number of communities in the coming weeks.
Blair Qualey is President & CEO of the New Car Dealers Association of BC. He can be reached at [email protected].
